6 Dec 2013
Flash: ECB hostage to the Fed - Rabobank
FXstreet.com (Barcelona) - Strategists at Rabobank noted a less dovish one from the ECB.
Key Quotes:
“The ECB’s maintenance of the existing levels of its main policy rates on 5 December was largely expected by the market but what was not anticipated was the less dovish tone of both the statement and subsequent Q&A”.
“However, despite this it remains our view that the ECB will be forced to conduct further unconventional monetary policy easing in the relatively near future. Therefore in this piece we have revisited and updated a table investigating the easing options of the ECB which we first unveiled in our Rabo Rate Directions “A Trans Atlantic Policy Wedge” (available on our Bloomberg page RARA) which was published on 22/11/2013”.
Key Quotes:
“The ECB’s maintenance of the existing levels of its main policy rates on 5 December was largely expected by the market but what was not anticipated was the less dovish tone of both the statement and subsequent Q&A”.
“However, despite this it remains our view that the ECB will be forced to conduct further unconventional monetary policy easing in the relatively near future. Therefore in this piece we have revisited and updated a table investigating the easing options of the ECB which we first unveiled in our Rabo Rate Directions “A Trans Atlantic Policy Wedge” (available on our Bloomberg page RARA